Caesars Entertainment May Sell its Online Gambling Division

Published Saturday, February 09, 2013 - Online-Casinos.com

It is difficult to get a grip on the amount of debt the iconic gambling and hotel company Caesars Entertainment has on the books today. The nearest estimates conclude that debt is crippling the growth of this best known casino operator which released a financial preview recently, saying the estimated loss for the fourth quarter could range from $452m to $556m on revenue of $1.55 billion to $1.58 billion.

Caesars Entertainment may sell minority stakes in its online division Caesars Interactive and some of its land-based casino holdings in order to relieve the continuing and mounting debt load weight. Caesars says between $30m and $35m of the recent losses are to be attributed to Hurricane Sandy, which closed casinos in Atlantic City, a place where Caesars Entertainment has invested a great deal of money. Caesars hasn’t done well in Asia where profit has eluded the company since 2009. Stemming this trend Caesars has made joint venture moves in a project to build a casino and hotel in South Korea.

There is obvious trouble in paradise as a recent filing with the Securities Exchange Commission indicated that Caesars is considering liquidating segments of the Planet Hollywood casino in Las Vegas and its proposed casino in Baltimore. Caesars’ SEC filing also revealed it may also sell off part of its Caesars Interactive division, which includes the World Series of Poker brand, Playtica and Buffalo Studios social gaming sectors, also taking the proposed potential to offer online poker in Nevada away. The interactive division has potential but has not been generating the results it was originally intended to create.

Caesars Entertainment is being forced to make some tough choices in regards to its future development and should come out from under the weight of debt soon especially if the interactive division stars to produce results that are substantial enough to warrant a good price for its assets. New Jersey could very well be that ticket if time is on Caesar’s side.

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